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Business and Management
Finance and Accounting
Investments
Futures and Options Markets
1. Introduction to Derivative Markets
2. Futures Markets Fundamentals
3. Futures Trading Mechanics
4. Futures Pricing Theory
5. Hedging with Futures
6. Types of Futures Contracts
7. Options Markets Fundamentals
8. Option Valuation
9. Option Trading Strategies
10. Option Pricing Models
11. Option Sensitivities and Risk Management
12. Advanced Derivative Instruments
13. Risk Management in Derivatives
14. Regulatory Framework and Market Structure
4.
Futures Pricing Theory
4.1.
Spot-Futures Price Relationships
4.1.1.
Convergence at Expiration
4.1.2.
Basis Definition
4.1.3.
Basis Behavior Over Time
4.2.
Cost of Carry Model
4.2.1.
Storage Costs
4.2.2.
Financing Costs
4.2.3.
Insurance and Other Costs
4.2.4.
Convenience Yield
4.2.5.
Income from Underlying Asset
4.3.
Market Conditions and Price Patterns
4.3.1.
Contango Markets
4.3.1.1.
Characteristics
4.3.1.2.
Causes
4.3.1.3.
Trading Implications
4.3.2.
Backwardation Markets
4.3.2.1.
Characteristics
4.3.2.2.
Causes
4.3.2.3.
Trading Implications
4.3.3.
Normal Backwardation Theory
4.4.
Expectations and Risk Premiums
4.4.1.
Expectations Hypothesis
4.4.2.
Risk Premium Theory
4.4.3.
Market Efficiency Considerations
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3. Futures Trading Mechanics
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5. Hedging with Futures